Fuse Energy Token Gets SEC Nod to AI Energy Demand

Fuse Energy is preparing to launch the ENERGY token to meet the rising demand for energy powered by artificial intelligence.

AI is driving rising energy demand, and crypto companies are taking notice. On Tuesday, November 25, British energy company Fuse Energy announced that it has received the green light from the US Securities and Exchange Commission to launch its Energy Dollars token, according to a press release shared with crypto.news.

“Our goal at Fuse Energy is to build an innovative and credible network, coordinating onchain incentives to build resilience in our network systems,” said Alan Chang, CEO and co-founder of Fuse Energy.

The company, co-founded by former Revolut executives, revealed that the SEC had issued a no-action letter on the token launch. According to Fuse, the token will help scale the energy network, which is necessary due to the rising demand for AI data centers and other uses.

“The receipt of this no-action letter underscores the SEC’s continued commitment to engaging with crypto projects and providing clarity in the space. We hope this clears a path forward for more teams to build truly useful blockchain products, tackling problems as important as ours,” said Alan Chang, Fuse Energy.

AI creates an increasing demand for energy

AI contributes to a significant increase in energy demand. The demand for advanced AI models is increasing, and with it the demand for energy. Newer large language models in particular require exponentially more energy for both training and regular operations.

For this reason, AI is expected to consume more energy in the near future. So much so that data centers could take that into account, according to a report from the Penn State Institute for Energy and the Environment 20% of global energy use by 2030-2035.